Tether made a significant announcement on February 11th, introducing the Legacy Mesh system. This innovative system is designed to bridge the gap between USDT0 and existing USDT deployments across various blockchain networks. The integration includes popular networks such as TRON, Ton, Ethereum, Arbitrum, Ink, and Berachain, creating a cohesive framework for stablecoin interoperability.
The Legacy Mesh plays a vital role in providing connectivity for chains where USDT is already established, enabling smooth liquidity movement between different networks. Arbitrum acts as the central hub chain, facilitating the connection between USDT and USDT0 networks.
USDT0 was initially introduced by Tether and LayerZero on January 16th as a multichain version of USDT. Powered by the Omnichain Fungible Token (OFT) standard, USDT0 allows for cross-chain liquidity without the need for intermediary bridges or wrapped assets. This decentralized approach utilizes a network of oracles and relayers to facilitate seamless transactions.
Unlike existing cross-chain solutions that rely on third-party bridges, the Legacy Mesh eliminates liquidity fragmentation and simplifies token management. Arbitrum enables native USDT0 interoperability, providing users with efficient access to liquidity pools. This advancement enhances the DeFi protocol’s depth, positioning Arbitrum as a key liquidity hub for stablecoin transfers.
Paolo Ardoino, the CEO of Tether, emphasized the significance of the Legacy Mesh, stating, “The Legacy Mesh is bringing 138 billion USDT together, making it a crucial advancement toward a unified on-chain dollar system. It simplifies liquidity movement from chains like Tron and Ethereum into ecosystems like TON and the USDT0 networks in a fully permissionless and self-sufficient way.”
The Legacy Mesh leverages Ethereum, TRON, and TON liquidity pools to facilitate secure and cost-effective transfers through LayerZero messaging. By connecting USDT deployments to the largest USDT0 deployment on Arbitrum, the Legacy Mesh unifies 98% of all USDT within a single system. While transfers within the Legacy Mesh and to Arbitrum are already live, plans are underway for multihop transfers from Legacy Mesh chains to USDT0 networks outside Arbitrum, including Ink and Berachain.
As liquidity continues to flow seamlessly across decentralized ecosystems, having a robust multichain alternative is essential for USDT to maintain its position as the leading stablecoin in the market. The Legacy Mesh represents a significant step forward in achieving this goal.